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CBI latest to warn of recession

The CBI has predicted that the UK will fall into recession later this year, adding to similar warnings from the European Commission and British Chambers of Commerce.

The group forecasts the economy will shrink by 0.2% in the third quarter of 2008 and a further 0.1% in the final quarter.

But it added that it expected any recession to be shallow and predicted a negligible rise of 0.3% in 2009.

CBI director general Richard Lambert said: “Over the past year our forecasts for economic growth have been shaved lower and lower as the UK economy continues to struggle with the twin impact of higher energy and commodity prices and the credit crunch. “Having experienced a rapid loss of momentum in the economy over the first half of 2008, the UK may have entered a mild recession that will hopefully prove short lived.”

This was posted in Bdaily's Members' News section by Ruth Mitchell .